Terminable Annuities (3) may be regarded as
a "Sinking Fund," or means by which a con-
siderable portion of the National Debt is paid
off every year and "The Funds" proportionately
reduced.

Thus the Government is empowered to give
an annuity for a certain number of years in ex-
change for permanent stock in the Funds. For
instance, a holder of £1,000 2 3/4 per cent. stock is
receiving £27 10s. a year in the shape of interest.
The Government offers to pay double the amount
of interest or £55, if the £1,000 stock is trans-
ferred to them, and to continue this £55 a year
for twenty years and no longer.

At the expiration of that period the interest
ceases and the principal sum of £1,000 is struck
off the National Debt, which is in consequence
reduced by that sum.


LOANS - THE INTEREST ON WHICH IS GUARAN-
TEED BY THE BRITISH GOVERNMENT.

These consist of loans to the Government of
Canada for railway purposes, upon which 4 per
cent. per annum is guaranteed. Also loans to
the Colonies of Jamaica at 4 per cent. and Mauri-
tius at 3 per cent., to the Egyptian Government